Find all subgame nash equilibria of finitely repeated game

Reference no: EM132198924

Question: Suppose that two players, Bob and John, play the following matrix game.

Bob\John	left	center	right
top	0,0	0,0	0,0
middle	0,0	3,3	7,0
bottom	0,0	0,7	6,6

Part a: Find all of the game's pure-strategy Nash equilibria. Now suppose that the players play this game twice in a row. They observe what each other did in the first stage before they decide what to do in the second stage. Each player's payoff is the (undiscounted) sum of his payoffs in the first and second stages.

Part b: Find all Subgame Nash Equilibria of this finitely repeated game.

Part c: Why may it be possible to support non-equilibrium outcomes in a stage game when the game is repeated a finite number of times.

Part d: Why might it be possible to support cooperation in an infinitely-repeated

Reference no: EM132198924

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